Octane Closes $700 Million Forward-Flow Deal with New York Life, MetLife Investment Management, and Equitable
Octane, a fintech company specializing in recreational purchases financing, has secured its largest forward-flow facility to date, valued at $700 million. The deal involves three major insurance partners: New York Life ($350 million), MetLife Investment Management ($200 million), and Equitable (NYSE: EQH) ($150 million).
The agreement will fund fixed-rate installment powersports loans originated by Octane's in-house lender, Roadrunner Financial. This partnership follows Octane's strong performance in 2024, with a 36% year-over-year growth in originations. The company has sold or committed to forward flow agreements exceeding $2 billion since late 2023, including a previous $500 million facility with AB CarVal in 2024.
Octane, una fintech specializzata nel finanziamento di acquisti ricreativi, ha ottenuto la sua più grande linea di finanziamento forward-flow fino ad oggi, del valore di 700 milioni di dollari. L'accordo coinvolge tre importanti partner assicurativi: New York Life (350 milioni di dollari), MetLife Investment Management (200 milioni di dollari) e Equitable (NYSE: EQH) (150 milioni di dollari).
L'intesa finanzierà prestiti a rate a tasso fisso per veicoli powersports, erogati dal finanziatore interno di Octane, Roadrunner Financial. Questa collaborazione segue le ottime performance di Octane nel 2024, con una crescita del 36% su base annua nelle erogazioni. L’azienda ha venduto o sottoscritto accordi forward-flow per oltre 2 miliardi di dollari dalla fine del 2023, incluso un precedente finanziamento da 500 milioni di dollari con AB CarVal nel 2024.
Octane, una fintech especializada en financiamiento de compras recreativas, ha asegurado su mayor línea de financiamiento forward-flow hasta la fecha, valorada en 700 millones de dólares. El acuerdo involucra a tres importantes socios aseguradores: New York Life (350 millones de dólares), MetLife Investment Management (200 millones de dólares) y Equitable (NYSE: EQH) (150 millones de dólares).
El acuerdo financiará préstamos a plazos con tasa fija para vehículos powersports originados por el prestamista interno de Octane, Roadrunner Financial. Esta alianza sigue el sólido desempeño de Octane en 2024, con un crecimiento interanual del 36% en originaciones. La compañía ha vendido o comprometido acuerdos forward-flow por más de 2 mil millones de dólares desde finales de 2023, incluyendo una línea previa de 500 millones de dólares con AB CarVal en 2024.
Octane은 레크리에이션 구매 금융을 전문으로 하는 핀테크 회사로, 지금까지 최대 규모인 7억 달러 규모의 선도적 자금 조달 계약을 체결했습니다. 이번 거래에는 세 개의 주요 보험 파트너가 참여했습니다: New York Life(3억 5천만 달러), MetLife Investment Management(2억 달러), 그리고 Equitable(NYSE: EQH)(1억 5천만 달러)입니다.
이 계약은 Octane의 자체 대출 기관인 Roadrunner Financial이 취급하는 고정 금리 할부 파워스포츠 대출에 자금을 지원합니다. 이번 파트너십은 2024년 Octane이 기록한 전년 대비 36%의 성장에 따른 성과입니다. 회사는 2023년 말부터 20억 달러가 넘는 선도적 자금 조달 계약을 체결하거나 판매했으며, 2024년에는 AB CarVal과 5억 달러 규모의 계약도 포함되어 있습니다.
Octane, une fintech spécialisée dans le financement des achats récréatifs, a obtenu sa plus grande facilité de financement forward-flow à ce jour, d'une valeur de 700 millions de dollars. L'accord implique trois partenaires majeurs dans le secteur de l'assurance : New York Life (350 millions de dollars), MetLife Investment Management (200 millions de dollars) et Equitable (NYSE : EQH) (150 millions de dollars).
Ce partenariat financera des prêts à tempérament à taux fixe pour les véhicules powersports, émis par le prêteur interne d’Octane, Roadrunner Financial. Cette collaboration fait suite à la solide performance d’Octane en 2024, avec une croissance de 36 % en glissement annuel des originations. Depuis fin 2023, la société a vendu ou engagé des accords forward-flow dépassant 2 milliards de dollars, incluant une facilité précédente de 500 millions de dollars avec AB CarVal en 2024.
Octane, ein Fintech-Unternehmen, das sich auf die Finanzierung von Freizeitkäufen spezialisiert hat, hat seine bisher größte Forward-Flow-Fazilität im Wert von 700 Millionen US-Dollar gesichert. An dem Deal sind drei große Versicherungspartner beteiligt: New York Life (350 Millionen US-Dollar), MetLife Investment Management (200 Millionen US-Dollar) und Equitable (NYSE: EQH) (150 Millionen US-Dollar).
Die Vereinbarung finanziert festverzinsliche Ratenkredite für Powersports, die von Octanes hauseigenem Kreditgeber Roadrunner Financial vergeben werden. Diese Partnerschaft folgt auf Octanes starke Leistung im Jahr 2024 mit einem 36%igen Wachstum gegenüber dem Vorjahr bei den Kreditvergaben. Das Unternehmen hat seit Ende 2023 Forward-Flow-Vereinbarungen im Wert von über 2 Milliarden US-Dollar verkauft oder abgeschlossen, darunter eine frühere 500-Millionen-US-Dollar-Fazilität mit AB CarVal im Jahr 2024.
- Secured largest-ever $700M forward-flow facility with major insurance partners
- Strong 36% YoY growth in originations for 2024
- Achieved over $2B in forward flow commitments since late 2023
- Diversification of funding sources with high-quality capital providers
- None.
Insights
Equitable Holdings' $150 million commitment in this $700 million forward-flow facility represents a strategic allocation of capital toward consumer-backed assets in the powersports segment. This deal diversifies EQH's investment portfolio beyond traditional fixed-income instruments at a time when insurers are seeking yield-enhancing alternatives with manageable risk profiles.
The partnership with Octane is particularly noteworthy as the fintech demonstrated
The involvement of AB CarVal as investment advisor highlights internal synergy between Equitable and its subsidiary AllianceBernstein, potentially creating operational efficiencies in alternative investment management. Equitable's CIO explicitly confirmed this transaction supports the strategic development of their Private Alternative capabilities, indicating this isn't merely an opportunistic investment but part of a broader portfolio strategy.
For insurers, these carefully structured forward-flow agreements can be particularly valuable as they provide predictable investment deployment at predetermined underwriting standards. This helps create asset-liability matching advantages while potentially generating spread income above what's available in traditional fixed income markets.
This transaction demonstrates Equitable's implementation of a sophisticated capital allocation approach through structured consumer finance channels. By leveraging AB CarVal's expertise in private credit markets, EQH gains operational advantages that many competitors lack when accessing this alternative asset category.
The forward-flow agreement structure creates significant advantages compared to secondary market acquisitions: predetermined credit parameters, consistent vintage exposure, and elimination of adverse selection risks. For Equitable, committing
Powersports loans typically feature higher yields than traditional auto loans due to their specialized nature, while maintaining reasonable loss profiles when properly underwritten. Octane's digital-first model introduces efficiencies that traditional lenders often lack, potentially enhancing performance metrics across their portfolio. Their loan servicing capabilities provide additional quality controls that benefit institutional investors.
The transaction's timing is strategically important. Market conditions are driving increased consumer lending opportunities as traditional banking institutions face regulatory pressures on certain asset classes. By partnering with established insurers like New York Life and MetLife alongside EQH, Octane gains funding stability while investors receive institutional-grade structuring and potential yield advantages that aren't easily replicated in public markets.
Partnership with Leading Insurers Helps Turbocharge Company's Continued Growth
Under the terms of the deal, New York Life has agreed to fund up to
The proceeds of this deal will support Octane's continued momentum; the company grew originations in 2024 by
"We're excited to leverage our strong, consistent, and stable credit performance by offering alternative asset classes to attract three distinguished insurance partners," said Steve Fernald, President and CFO of Octane. "We look forward to strengthening our relationships with New York Life, MIM, and Equitable and continuing to serve our OEM and dealer partners with our innovative solutions and fast, seamless digital experience."
"We are delighted to partner with Octane in this landmark forward-flow facility, which provides a valuable investment opportunity for New York Life and will help support Octane's success and expansion," said Brendan Feeney, Managing Director and Head of Consumer Asset Based Finance with New York Life. "This deal reinforces our commitment to our policy owners by investing in high-quality assets for the stability and growth of our portfolio. We look forward to deepening our relationship with Octane and our partners in this investment, MIM and Equitable."
"We are committed to investing in innovative financial solutions that align with the strategic objectives of our General Account and this transaction further supports the development of AllianceBernstein's Private Alternative capabilities, including AB CarVal," said Glen Gardner, Chief Investment Officer of Equitable.
Octane has sold or entered into forward flow commitments of over
1 Based on revenue as reported by "Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual)," Fortune magazine, 6/4/2024. For methodology, please see https://fortune.com/franchise-list-page/fortune-500-methodology-2023/.
About Octane:
Octane® is revolutionizing recreational purchases by delivering a seamless, end-to-end digital buying experience. We connect people with their passions by combining cutting-edge technology and innovative risk strategies to make lifestyle purchases–like powersports vehicles, RVs, boats, personal watercraft, and outdoor power equipment–fast, easy, and accessible.
Octane adds value throughout the customer journey: inspiring enthusiasts with the Octane Media™ editorial brands, including Cycle World® and UTV Driver®, instantly prequalifying consumers for financing online, routing customers to dealerships for an easy closing, and supporting customers throughout their loan with superior loan servicing.
Founded in 2014, we support approximately 60 OEM partner brands and over 4,000 dealer partners, and have a team of over 550 in remote and hybrid roles. Visit www.octane.co.
Octane® and Roadrunner Financial® are registered service marks of Octane Lending, Inc. Cycle World® and UTV Driver® are registered trademarks of Octane Media, LLC.
Media Relations: Shannon O'Hara
Press@octane.co
Investor Relations:
IR@octane.co
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SOURCE Octane
FAQ
What is the size and structure of Octane's new forward-flow facility with insurance partners?
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